Custodian
Definition
A custodian is the IRS-approved firm that administers a self-directed IRA. It holds the account, processes transactions on your instruction, arranges approved storage, and handles the required reporting.
In a precious-metals IRA, the custodian is the firm that keeps the account compliant.
Why it matters
IRS rules require an approved custodian to administer a self-directed IRA; you cannot hold the account or the metal personally. The custodian’s role keeps the account within the rules, which is why the choice of firm and its fee structure affects your long-term cost.
In practice
The custodian opens and maintains the account, executes purchases and sales of approved metals when you direct them, coordinates with an approved depository for storage, and issues tax documents. Many charge setup, annual, and storage fees, so comparing those costs is worthwhile before committing.
Common confusion
A custodian is not the same as a dealer or a depository. The dealer sells the metal, the depository stores it, and the custodian administers the account that ties them together. Some firms partner across these roles, but they remain distinct functions.